In a recent development, the Delhi High Court issued an interim order to protect the IT services provided by SBI Cards and Payment Services Private Limited against potential disruptions from Kony, Inc.
Background: SBI Cards and Payment Services Private Limited, serving nearly 1.7 crore credit card holders, entered into an agreement with Kony, Inc in 2014 for the development of a Mobile Application Development Platform (MADP). Disputes arose during negotiations for license renewal, leading to concerns about service interruptions.
Court’s Decision: Justice Prathiba M Singh passed an ex-parte ad interim order on April 26, restraining Kony, Inc from taking any action that could disrupt SBI Card services. The Court emphasized the critical nature of uninterrupted financial services and the risks posed by software licensing disruptions.
Rationale Behind the Decision: The Court highlighted the sensitive nature of financial services, emphasizing the potential risks to customer data and transaction processing in case of interruptions. The order aims to ensure service continuity, customer satisfaction, and compliance with financial regulations.
Legal Proceedings: Senior Advocate Rajeev Nayar, along with a team of advocates, represented SBI Cards and Payment Services Private Limited in the legal proceedings. The Court directed the case for further consideration on May 22.
Conclusion: The interim order issued by the Delhi High Court serves to protect the interests of SBI credit card holders by preventing potential disruptions in IT services. It underscores the importance of smooth operations in financial services and the need for legal safeguards to ensure uninterrupted service delivery.
